(I) Product function

The clients (domestic enterprises) borrow domestic and foreign currency capital from overseas affiliated enterprises or overseas banks with the guarantee of our Bank for the needs of its domestic business activities within its own approved limit.

  

(II) Business characteristics

1. It is applicable for both Chinese and foreign enterprises to approve the cross-border financing limit according to their own financial situations.

2. Support the use of our Bank’s international letter of guarantee to provide credit enhancement for enterprises’ overseas financing;

3. Expand financing channels for Chinese enterprises and solve the problem of “difficult and expensive financing” for enterprises.

4. Reduce financing costs with the help of price differences between home and abroad currency, as well as between domestic and foreign currency.

  

(III) Applicable objects

1. Large and medium-sized credit extension clients whose loans on the balance sheet cannot be made available due to price or limit;

2. Enterprise clients with good financial status who wish to reduce financial costs through overseas financing;

3. Enterprise clients who wish to expand financing scale and support business development with the help of the credit enhancement of our Bank.

  

(IV) Business procedure (loans made by overseas banks)

1. The clients (domestic enterprises) submit materials to our Bank to apply for the limit of credit extension of the letter of guarantee, and our Bank assists them to obtain the financing credit extension of overseas banks;

2. The clients sign a letter of guarantee agreement with our Bank and a loan contract with overseas banks.

3. Our Bank assists clients to apply to the State Administration of Foreign Exchange for the handling of the full-caliber cross-border financing record;

4. The branch will implement the warranty conditions, issue the letter application, and our Bank will issue the financing letter of guarantee.

5. The overseas banks remit capital to the account opened by the clients in our Bank, or in the case of foreign currency, the foreign exchange will be settled and put into the account.

6. The clients will repay the principal and interest to the overseas banks on time and release the limit of the letter of guarantee of our Bank on the due day.

  

(IV) Business procedure (loans made by overseas enterprises)

1. The clients of our bank (domestic enterprises) sign loan contracts with overseas enterprises to specify such factors as loan term, interest rate, amount, etc.;

2. The clients (domestic enterprises) submit relevant materials to our Bank, and our bank assists them to apply to the State Administration of Foreign Exchange for the handling of the full-caliber cross-border financing record;

3. Overseas enterprises remit capital to the accounts opened by the clients in our Bank. In case the capital is in foreign currency, the foreign exchange will be settled and entered into the account;

4. The clients of our Bank (domestic enterprises) repay the principal and interest to the overseas enterprises on time.